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Thursday, February 07, 2013

George Soros: The euro is "bound to break up the European Union"

In an interview with Dutch TV programme Nieuwsuur (about 28 minutes in), prominent
investor George Soros has warned that, "I am terribly concerned about the euro
potentially destroying the EU. There is a real danger that the solution to the
financial problem creates a really profound political problem."

Asked what kind of change is needed, he said,

"Germany needs to realise that the policy it impose on the euroarea - the
austerity programme - is counter-productive. It cannot actually succeed. At the moment they [the South] is being pushed -
unwittingly, not with bad intentions, but the effect is that they are being
pushed into a long lasting depression and that is what is happening to Europe.
And it may last more than a decade, in fact it could become permanent, until the pain is so big that eventually
there may be a rebellion, a rejection of the EU, and that would then be the
destruction of the EU, which is a terribly heavy price to maintain to preserve
the euro, which is meant to be just a servant of the EU."

On whether the euro will survive, he said,

"It could
last quite a long time, the same way as the Soviet Union, which was a very bad
arrangement, lasted for 70 years. However, I think that eventually, it is bound
to break up the European Union. The longer it will take, and it may take
generations, those will be lost in terms of political freedom and economic
prosperity. The solution is to me a terrible tragedy for the EU. And it's
happening to the most developed open society in the world. To me it's a
terrible tragedy. It doesn't have villains, because I don't think that Germany is
doing it with bad intentions but its happening out of a lack of understanding of very complex problems."

22 comments:

What a fabulous interview. Soros says what I have been thinking for years: the eurozone is a slowly sinking ship; and the longer it endures, the worse it is for all the inhabitants of eurolandia.We must not be shackled to this sinking ship. OUT OF EU NOW!

The Euro isn't what is breaking up the EU. The lack of transparency into EU-institutions combined with little to no accountability is what is creating a lot of distrust. Who trusts EU-institutions to handle their taxes well?Who trusts the politicians in the periphery?

No transparency -> no trust -> no money.

Would he lend his money to the program countries so that they could end their 'austerity' and grow their economies and pay him back?

While I highly appreciate the contributions of Mr. Soros in philanthrophy and his unique choice of work areas in particular, Soros is also a foreign currency speculator, in other words let's discount his disruptive remarks. We'll succeed when we stay firm on course and abide to and further strengthen our agreed principles. The misguided British eurosceptism undermines influence and avoids real transformation of European governance.

Did Soros suggest shrinking the eurozone as the best way to preserve his precious EU?

Franco-German policy, supported by Cameron, is to do whatever is necessary - legal or illegal, ethical or unethical - to preserve the present eurozone intact so that it can later expand to engulf all EU member states including the UK.

Whether you view Cameron as just another Tory traitor from the same mould as Major, or just as a complete bloody idiot, clearly the correct policy for a UK government which believed we should stay in the EU but never join the euro would be to urge that countries which should never have been allowed to join in the reckless merged currency experiment should now be allowed, or if necessary induced, to leave it, that no EU country should be obliged to join it, and that there should be much stricter controls on which countries are allowed to join it.

The facts are that Cameron went along with illegal bailouts to preserve the eurozone intact, and he ignored the pleas from the Tories' Czech allies that their country should be relieved of the legal obligation to join the euro, and he has allowed that legal obligation to be imposed on Croatia under its treaty of accession to the EU, and now he has said nothing in support of the proposal from Rutte that the EU treaties should be amended to allow countries to leave the euro while remaining in the EU.

And back in 2010 when he had the opportunity to demand a substantive quid pro quo for the EU treaty change being demanded by Merkel he failed to do so, and he simply gave her that treaty change through European Council Decision 2011/199/EU of March 25th 2011.

@ Denis Cooper. Excellent comment, I wholeheartedly agree. It is the democratic deficit that will ultimately destroy the EU. Cameron is presumably giving Rutte private support, along with the Dutch Foreign Minister. If not, there is a deficit in the UK Government's position as well.

Soros is a convicted felon in France, has a warrant for his arrest in Russia, known for "having broken the bank of England", and continued his parasitic speculative trading in Africa, Asia and South America. Soros NGO's and deceptively named organizations such as the "Human Rights Watch" groups are self serving influence peddling organizations used to corrupt governments, destroy opposition, and line Soros' pockets. He is a menace to society.

Germany is NOT responsible for the problems caused by the euro. The euro itself is the problem. It is being debased to Germany's expense in order to benefit the likes of Greece, etc. The euro will collapse of its own misconstructions.

I hate these "anonymous" postings and above shows why! The first one talks sound sense (though he has more confidence in our government than I do!) and the other reads like the old KGB doing a stint of character assassination and lies.(How can we tell them apart? Could they not log in as "Anonymous X" -- or "A...:Y" ?)....................................Soros is no fool and, alright, he's a speculator but that should teach countries not to leave so many loopholes.

Much as I despise him, he is right. History shows that lower government intervention in the economy and lower taxes spur growth. What the EU & japan are doing now has always led to currency destruction and economic chaos - followed by war.

The Euro sceptics are very funny. Allready more than years are you proclaiming the inevitable end of the Euro....But it will not happen. You are blinded by hatred and spite.George Soros is an old man, saying in the interview that in the decades to come the Euro will collaps. A more vague look into the future by a grand old speculator is not possible.The last year one after the other Anglo- Saxon expert predicted the end of the Euro and a Grexit. All who put their money on this whisfull thinking are regretting just that, listining to attention seekers like Soros.Daan Diederiks

Let me elaborate. We know that Scotland seeks its independence. An independent nation state would most likely want to join the European Union. Consider the remains of the United Kingdom. If the UK leaves, it has less say and influence and would have to copy&paste European laws, as Switzerland and Norway. Some euro sceptics dream of trade agreements but the UK does not carry much global weight. It would get far worse deals. Formal national sovereinty is lesser useful when a people is not able to govern its nation because dirty petro industries or banking or fishery industries become super-dominant. Classic German constitutional theory calls it the freedom of a people. Does the British people on its own enjoy the freedom to regulate its financial industries, get financial governance right? Or can they just impose rules which are met by consent of the regulated subjects? According to popular wisdom consent of frogs for draining swamps is difficult to get.

We do not share the continental fear of challenging this ridiculous situation. Given the history of Europe, I am shocked at how the people have caved in and handed over their freedom to an unelected bunch of incompetents without even a muffled complaint. You continentals shirking your responsibilities just leaves it down to the UK to point out (yet again) that the European emporer is wearing no clothes.

You only quote threats as to what could happen to the UK. We will have our freedom and that, as you well know, is worth more than anything.